How To Get An International Student Loan In Australia

Are you Eligible to get an International Student Loan in Australia?

The answer to that question is yes and no. Yes, you are eligible for private loans, and no, you’re not eligible for government loans. Quite a few banks in Australia (and universities too) will provide you with personal student loans, but before they do that, you will have to meet certain requirements that make you eligible for the loan. Qualifying for bank loans in the country is harder. Here are the criteria-
• You must have an Australian visa
• You must have regular source of income or be employed
• You should be an Australia resident
• You should be financially secure enough to pay back your loan within the specified deadline
• You should have an account with an Australian bank
So if you’re an international student who’s currently pursuing his education in Australia (or at least wishes to do so) and needs a loan to continue in Australia, be prepared to take up a regular part-time job or you don’t stand a chance to get a loan in the country.
As for loans you can get from the university, here are requirements you need to meet before you apply for one –
• You need to be a regular, full-time student of the university that offers student loans
• In a single semester, you have earned at least 18 credit points or a total of 36 in an academic year
• If you wish to take a loan either for your first or your final semester, the university will not allow it. In such cases, you can opt for cash-based short-term loans instead
• You must not have a record of delinquency; and must present yourself as fully capable of completing your course successfully
• You will be required to supply proof of your financial background along with the proof that your application for loan elsewhere was rejected
• In case you have debts or fines which you haven’t paid yet or other such expenses, you will not qualify for the loan
• If you have failed to explore the area of part-time employment to fund your education before taking a loan, your loan application will be rejected
• If you haven’t paid the previous semester’s fees to the university yet or haven’t paid fines you owe to the university, you will not be granted a loan.
So be sure to tick all the above boxes before you apply for a student loan from the university of your choice. However, there are chances of you getting some form of government aid if you belong to certain nations since the Australian government has a tie-up with these countries to make the education process easier for students. Some of these countries are US, Canada, UK, New Zealand, Germany, Brazil, etc.

What are the Types of Loans you can take? 

As an international student in Australia, you can call yourself lucky. There are so many loan options to choose from that you can say you’re almost spoilt for choice. Now in this blog we will discuss the different types of loans you can get in Australia.

• Short-term or Emergency Loans

This type of loan, as is the usual norm, is offered by universities in the country. The rules can vary slightly from university to university, but they are mostly the same everywhere. As the name implies, you can take this loan if you face a sudden or unexpected cash crunch. You don’t need a guarantor to avail this type of loan, and it is interest-free if you repay it within two months of taking it or by the deadline agreed upon. In situations where you fail to do so, an interest rate of 2.5% per month will be accrued to your loan. To be eligible for this loan, all you have to do is be a full-time student of the university you’re in. However, certain other schools may require proof of your current financial situation as well. You can expect to get up to $1,500 in cash as a loan.

• Long-term or General Purpose Loan

Well, these are provided by both universities as well as private banking institutions. They may or may not cover your other expenses related to your education such as your cost of living etc., depending on the institution and the plan you opt for. The eligibility criteria for it are the same as listed in the section above, and you can borrow $4,000-$8,000 from a university. This amount can be higher when you borrow from a bank. A college will give you the loan interest-free, but you will have to pay a certain rate of interest to the bank. However, even colleges will start charging interest at the rate of 12.5% if you fail to repay the entire amount upon the completion of your course.
Now the following loans we’ll be discussing are solely offered by banks only and not by universities.

• Medical Student Loan

Some lenders offer this loan to students who are pursuing a dental or medical degree in Australia. If you meet the qualifications, you can avail of this loan in your final year to either pay for your course or for other expenses such as your debts, your cost of living, etc.

• Unsecured Personal Loan

You need not to give a guarantee to secure this type of loan, but you will have to pay higher interest rates which can make it expensive. However, it offers more flexibility, and you can use it for multiple purposes.

• Secured Personal Loan

For this loan, you need to provide the bank a guarantee. This means that you have to attach an asset such as your car or any other valuable property for you to get the loan in the first place. The rates of interest can be variable or fixed, but they will usually be low. If you become a defaulter